Dexcom (Nasdaq:DXCM) shares took a hit after hours today on first-quarter results that fell short of the consensus earnings forecast.
DXCM shares were down 6.2% after hours but mostly recovered by the end of the next day.
The San Diego-based company posted profits of $97.3 million, or 93¢ per share, on sales of $628.8 million for the three months ended March 31, 2022, for a 72.2% bottom-line gain on sales growth of 24.5%.
Adjusted to exclude one-time items, earnings per share were 32¢, 20¢ behind expectations on Wall Street, where analysts were looking for sales of $623.36.
Highlights for Dexcom in the first quarter of 2022 included winning CE mark approval for its next-generation G7 CGM, launching the Dexcom One platform in the United Kingdom and garnering FDA breakthrough device designation for the use of CGMs in hospitals.
“Dexcom is off to a great start in 2022, advancing a number of strategic initiatives that strengthen our foundation for long-term growth,” said Kevin Sayer, Dexcom’s chairman, president and CEO. “We are very excited about our initial launch of G7 internationally and look forward to bringing this product to many more people globally over the course of the year.”
Dexcom remains unmoved on its financial guidance for 2022, saying it expects revenues to range between $2.82 billion and $2.94 billion. That would represent growth of between 15% and 20% year-over-year.
In the company’s earnings call, as transcribed by The Motley Fool, Sayer said the company is confident in “a meaningful U.S. launch of G7 this year,” with the next-generation platform still under FDA 510(k) review. He said the company expects clearance to come after the American Diabetes Association’s Scientific Sessions from June 3–7, 2022.
Sayer noted that Dexcom’s teams are preparing for a seamless transition once the G7 is available in the U.S., with preliminary discussions with payers to drive market access and the addition of incremental G7 lines in advance of the loss to support the expected ramp in demand.
The company is also working with insulin delivery partners to ensure that connected pumps and pens are integrated with the newest G7 technology.
“Our plan is to extend the G7 launch to a steady cadence of additional international markets over the remainder of 2022 with a growing impact to our overall sensor mix in the second half of the year,” Sayer said. “In the U.S., our 510(k) submission for the G7 sensor, receiver and Android and iOS apps remain under review. We are in the traditional back and forth that comes with these processes. And we appreciate the FDA’s ongoing attention to their view even as they juggle a very busy schedule.”